According to the latest data, the country's inflation has risen to 6.95 per cent in February compared to a year earlier, raising concerns that the central bank would reconsider the reversal of its monetary policy.

The RBI governor D Subbarao had indicated that the central bank is considering a reversal of the monetary policy as the inflation and the high interest rates have affected economic growth in the country. However, the renewed increase in the inflation could force the central authority to hold the rates for some time longer.

The benchmark wholesale-price index was recorded at 6.55 percent in January, according to a statement from the union commerce ministry. The inflation as recorded at 9.54 per cent in February 2011. Food inflation was 6.07 per cent in February compared to 0.52 per cent in January.

Pulses became expensive by 7.91 per cent and vegetables became dearer by 1.52 per cent in the month. Egg, meat and fish prices rose 20% during the month, from 18.63% in January. The prices of milk rose 11.70 per cent while rice and cereals prices increased 1.53% and 1.71% respectively.

The Reserve Bank of India has said yesterday that a rise in crude oil prices this year would impact influence. The central bank had indicated that it would reduce borrowing costs if the inflation would continue to fall. The government is also required to take steps to control the fiscal deficit in the year.